Good article by the International Herald Tribune. Focus is on Yahoo's (YHOO) acquisition of Right Media and fact that Yahoo initially invested at a $200 million valuation and then 6 months later paid $850 million for entire company. Are you valuation services companies paying attention to this? That is either quite a control premium, a really discounted prior deal, or as the article suggests, another sign that these public companies - Yahoo, Google, eBay have currencies (their stock) that needs to be used to go out and try to buy growth. As we saw recently with eBay/Skype the deals are probably too generous and there probably needs to be more carrot with management as part of the deal.
The Right Media founder offers a surprisingly candid quote:
"I have to say I giggled," O'Kelley, 30, said of Yahoo's acquisition, which earned him $25 million. "There is no way we quadrupled the value of the company in six months."
http://www.iht.com/articles/2007/10/16/business/bubble.php
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